Potential powers to levy council tax on second homes in North Ayrshire have been left on the table after the Tory group was defeated in a call-in to the audit and scrutiny committee.
The Scottish Government launched a consultation on council tax for second and empty homes, and non-domestic rates thresholds, on April 17 and responses are being sought by July 11.
This public consultation seeks views on giving local authorities the power to increase council tax on second homes and empty homes, as well as considering whether the current non-domestic rates thresholds for self-catering accommodation remain appropriate.
There is the potential for greater fiscal empowerment for councils in the area of council tax, with the aim of creating the right incentives to increase the availability of housing. The cabinet agreed to the consultation at a meeting in June.
The Conservative group put forward a motion to the audit and scrutiny committee, saying that the matter should be sent back to cabinet for further discussion.
They said: “The response to the Scottish Government consultation will form the basis of North Ayrshire’s policy if this becomes policy and therefore, the council’s responses should be as complete and considered as possible.
“The current response makes several assumptions about the potential benefits of charging additional council tax on second homes that are not supported by any evidence.
“North Ayrshire Council is currently undertaking wide-reaching research into the housing supply and housing demand on Arran, with the aim of ascertaining where the housing gaps are on Arran and what needs to be done to fill the gaps. There is no reference to this work in the response.”
Councillor Timothy Billings said: “There is a lot we agree on but councillor Christina Larsen said the number of second homes is limiting the availability of affordable homes and driving up house prices but these statements are not supported by evidence.
“As of the other day, Arran has one property for sale for every 70 residents and in North Ayrshire it was one for every 335 residents.
"If we are targeting raises in council tax on second homes, the council needs to have the flexibility to be able to target what it wants to achieve without the tourist economy, which relies on people having second homes.”
Cabinet member for finance, Christina Larsen said: “This is about a consultation, we have to look at it after if we get the powers. We don’t even know if we are going to get the powers.
“So we don’t know what the impact is going to be at the council yet. Doing assessments in the timeline we have would be very difficult to do.”
Tory councillor Cameron Inglis asked head of finance, Mark Boyd: “Who are we as a council to tell people how they should use their second homes?”
Mr Boyd replied: “I am a wee bit reluctant to answer that and I certainly would not want to comment on the merits or otherwise of local taxation as an officer of the council.”
Councillor Eleanor Collier put forward an amendment that the response would be given to the Scottish Government as agreed at cabinet.
There was a deadlock after three voted for the Tory motion to refer the matter back to cabinet and three for the amendment. But Councillor John Bell exercised the casting vote to ensure the amendment went through.
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